Caterpiller tells Illinois "shape up or we are shipping out"

Now who would have thought that when those democrat policies in Illinois made it more expensive to do business there that businesses would simply pick up and move out? Illinois is well on its way to becoming the next Michigan if they can't get their stuff in order and kick out these leftist policy makers who simply drive jobs right into neighboring states where its more feasible to do business.

Now who would have thought that when those democrat policies in Illinois made it more expensive to do business there that businesses would simply pick up and move out? Illinois is well on its way to becoming the next Michigan if they can't get their stuff in order and kick out these leftist policy makers who simply drive jobs right into neighboring states where its more feasible to do business.

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Or more likely into Tennessee, Georgia, Alabama or South Carolina which are "Right to work" states with very friendly business laws.

Or more likely into Tennessee, Georgia, Alabama or South Carolina which are "Right to work" states with very friendly business laws.

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Thats where a lot of jobs are going, and right to work states do have an advantage over non right to work states. I still think Indiana is a good option for them as soon as the democrats here decide to quit throwing a temper tantrum, and get back to work we could be cutting our corporate tax rate and hopefully in the next legislative session be a right to work state as well.

Ah, yes. And in your top ten favorit movies of all time is "Red Dawn". Of course. So tell me why the state of Texas hasn't simply posted some rangers and high-school students with rifles on the border? Hell, boys! Problem solved! Send the bill to Washington.

Thats where a lot of jobs are going, and right to work states do have an advantage over non right to work states. I still think Indiana is a good option for them as soon as the democrats here decide to quit throwing a temper tantrum, and get back to work we could be cutting our corporate tax rate and hopefully in the next legislative session be a right to work state as well.

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This does sort of illustrate the dichotomy of capitalism VS democracy; which is to say that all actors are free to determine their own tax rates, regulations, etc (be they smaller actors such as states or larger actors such as countries). This forces a reactionary posture from all those affected by the decisions of one - maybe this escalates into a race to the bottom (as in lower tax rates) with the inevitable result being that tax rates are so low that municipalities can no longer afford to operate, or maybe this escalates into a race to the top (as in lower tax rates equals more business) with the inevitable result being that so much business is conducted in a select few locations that they hold all the power.

I think there is somewhat of an analogy happening here in what is going on in the larger global economy.

And, if I may be permitted to blather a moment longer, it is perhaps likely that this is the invisible hand dragging the US (and its constituent actors - i.e. states) into global economic equilibrium; we can fight it with all sorts of policies, and complain (perhaps rightfully so) about how the corporations stick it to the working man, but in the end, this is what Adam Smith was talking about when he wrote about the market being self-regulatory. Even if collective bargaining didn't exist as a concept or a policy, jobs would still move over seas because labor is fundamentally cheaper over there - at some point, there will come a time where the price of labor is proportionate around the globe and at that point, it will stop being a political wedge.

brownbaggin,
My added two cents --many people yell for the U.S. to raise Tax on the evil rich Corporations. After Japan has lowered their Corporate Tax the United States has the HIGHEST corporate tax rate in the world. Throw in the additional labor cost and it does not take a genious to figure out why so many jobs have left the country.
For example if we eliminated the tax completely --Large IT corporations woulkd be encouraged to have their phone centers and help lines and manufacturing plants right here at home.
With the millions of high paying jobs that would be available, unenployent would go down and overall tax revenue would increase.
This is not rocket science. Remember the HIGHEST corporate tax rate --what incentive would you personally have if you were about to invest your money to risk opening a business where a huge chunk of the profit goes to the government ??

It's also not rocket sceince to know that Japan is the second most country worldwide in debt (with Zambawee, being number 1 spot).
The United States debt compares to pennies versus those of Japans.

You can eliminate all corporate taxes in the US, and yet the companies there, will still be paying more on healthcare alone for their employers, then monthly wages somewhere overseas.

I think that's why it would be a very smart move if Cat moved production to socialist Canada. They are located near the border, anyways.
With corperate tax rates sinking here, year by year, to get to 15% by 2013 (I believe), which would be 10% lower then the US, lower pension plan constributions, and no employer healthcare costs, (besides prescriptions and dental), it would be unwise not to consider.

And, most of you are right : Until the US lowers it's manufacturing and production costs, it will be hard to compete with jobs globally.
But, keep in mind, any measures towards that goal, usually comes from the costs of all ordinary citizens and workers.

[...] For example if we eliminated the tax completely --Large IT corporations woulkd be encouraged to have their phone centers and help lines and manufacturing plants right here at home.

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If you eliminated all taxes, but still had to pay a federal minimum wage, all the while the cost of someone over seas was the equivalent of 1$ (or 2, 3, 4, or 5 dollars), why would any corporation move jobs back to this country? I certainly concede the point that taxes are a large issue, but I guess I take issue with the idea that a dollar lost because of taxes is any more evil than a dollar lost because of any other reason - you are still losing a dollar. I guess my point would be that even if you removed taxes from the equation, what an American needs to be paid to meet the cost of living is still too high when compared to emerging economies.

However, when it comes to the issues of new businesses starting up, I readily concede and heartily agree that tax rates are pivotal; if they are too high, the incentive is just not there - at least, usually; I'm sure there are some extenuating circumstances where it would still be financially viable to start a business, but I would reckon they are the exceptions, rather than the rule.

Or more likely into Tennessee, Georgia, Alabama or South Carolina which are "Right to work" states with very friendly business laws.

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Exactly. Most heavy equipment and truck manufacturers have been moving assembly plants to the south for years. "Right to work" translates to "Right to work for less". Try forming a union in one of these states and see how far you get.

Ah, yes. And in your top ten favorit movies of all time is "Red Dawn". Of course. So tell me why the state of Texas hasn't simply posted some rangers and high-school students with rifles on the border? Hell, boys! Problem solved! Send the bill to Washington.

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Maybe they'll let Chuck Norris out of the asylum for a day so he can kick everyones ass and solve everything. "Chuck Norris shakes two Thorazine from the bottle---every time" Texas Rangers + Chuck Norris = Right Wing Nutfest.

Maybe they'll let Chuck Norris out of the asylum for a day so he can kick everyones ass and solve everything. "Chuck Norris shakes two Thorazine from the bottle---every time" Texas Rangers + Chuck Norris = Right Wing Nutfest.